BIR lowers collection goal from bets' election expenses

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has revised its collection target from election spending by politicians from P1.4 billion to about P700 million.

BIR Commissioner Joel Tan-Torres said yesterday that at the moment, they have already accounted for taxes from such spending amounting to less than P200 million.

“I would be happy if I get P700 million,” Tan-Torres said during a press conference.

Tan-Torres explained that they revised the BIR collection target because of the changes in the actual campaign period.

“The rules pertaining to start of the campaign changed. Before it was (thought to be) in December then it became February,” he added.

Tan-Torres said that political parties and candidates have until May or June to report to the BIR their spending and file the appropriate withholding taxes.

As this developed, Tan-Torres also said the revenue agency is also keeping an eye on suppliers and service providers of the Commission on Elections.

According to Tan-Torres, these companies are also subject to the five-percent withholding tax.

“We will be using information to track the service providers with regard to their withholding taxes,” Tan-Torres said.

“We have tools to easily check if they have proper tax compliance,” he added.

Meanwhile, the BIR hopes to meet its tax collection goal of P86.2 billion in April on the back of enhanced tax administration measures.    

Tan-Torres reported yesterday that from April 1 to 19, the BIR has so far collected P57.5 billion, which is still P28.7 billion shy from the goal of P86.2 billion.

However, Tan-Torres noted that the latest collection figures for April are already P21.1 billion above the P36.4 billion collected in the same period last year.

“We’re hopeful we’ll be able to exceed P86.2 billion,” Tan-Torres said.

The BIR chief believes that the agency is benefiting from measures that enhance its visibility among taxpayers.

“We’ve been very visible,” he said.

Nonetheless, Tan-Torres said the BIR also expects some revenue losses for the month of April.

He said the agency estimates P4 billion in revenue losses from a reduction in corporate income tax to 30 percent from 35 percent as mandated by the Reformed Value Added Tax Law of 2005.

Losses from tax deductions filed by businesses affected by typhoons Ondoy, meanwhile, are estimated at P7 billion.

For the first quarter, the BIR collected P172.3 billion or 9.25 percent above the goal for the period of P157.7 billion, preliminary data from the agency showed.

Tan-Torres said the BIR’s efforts to improve tax administration measures have been paying off as seen in the increase in collections.

These measures include a reinvigorated Run After Tax Evaders (RATE) Program, the implementation of its Oplan Kandado Program wherein business establishments with tax deficiencies are temporary padlocked, a lifestyle check on private citizens similar to what is done on public officials and tougher monitoring of bazaars or tiangges especially during the Christmas season last year.                    – With Iris Gonzales